The stock prices of Fannie Mae and Freddie Mac are undervalued, even if reform legislation limits the size of their retained mortgage portfolios, according to Jonathan Gray of Sanford C. Bernstein & Co.Mr. Gray, in a report issued last week, noted that Rep. Richard Baker's proposed legislation does not place a cap on the GSEs, though some critics, including Federal Reserve Chairman Alan Greenspan, have called for a cap on the GSE portfolios. Without a cap, Mr. Gray estimated that the GSEs each have a fair share price expectation of between $70 and $75 based on 2006 earnings estimates. With a $200 billion portfolio cap, the share price range would drop to $60 to $65 per share.
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The new Financial Stability Oversight Council report also recommends an expanded Ginnie Mae PTAP facility and an industry-funded liquidity resource.
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The publicly traded title holding companies all had stronger earnings as the mortgage market improved from one year prior.
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One in every 37 residential properties nationwide had a loan-to-value ratio of 125% or greater to begin the year, according to a new report.
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There's temporary leeway on formal compliance with replacement-cost value requirements in order to sort out insurer concerns with a recent re-emphasis on them.
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Max Levchin, CEO of the buy now/pay later lender, said recent tests show young adults prefer interacting with intelligent chatbots over phone-based agents, but the company doesn't foresee major cost savings from generative AI for a few more years.
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May 10